Cutting wages no answer
to retail downturn
Cutting wages and conditions and allowing 24/7 shopping will not solve the current downturn in retail, says SDA Secretary Peter Malinauskas.
Peter said recent claims by the Productivity Commission that deregulating shopping hours and ensuring less reliance on enterprise agreements were "flawed."
"Slashing wages and conditions and making employees work on public holiday will not improve the efficiency of the retail industry," he said.
Peter said retail sales are down because Australians are saving more and although consumer confidence is currently low, there is no reason to believe retail sales won't pick up.
"It's worth remembering that many retailers are doing well and their profits are increasing," he said. "Monthly retail sales rose in July by a seasonally adjusted 0.5%."
Peter said regular and fair pay rises skilfully negotiated by the SDA put more money into the pockets of retail, fast food and warehouse workers and, therefore, into the economy.
Productivity Commission submissions highlight that Australian retail workers are highly paid in comparison with the rest of the world – and this is the result of the SDA's hard work and expertise in negotiating enterprise agreements for members.
"The SDA's core business is negotiating the best pay rises and conditions possible for our members and we'll continue to do so," Peter said.
"When it comes to trading hours, it's nonsense to suggest that deregulating shopping hours in Adelaide and depriving retail workers of their right to public holidays will magically conjure up more money for consumers to spend."
Shops were already open 355 days of the year and few retailers in metropolitan Adelaide were taking advantage of their right to open until 9pm weeknights.
Peter said the retail industry must be dynamic and continue to value and enhance the vital role customer service plays in the success of the industry – and customer service can only be delivered by well-paid retail workers.
"Good customer service is what differentiates bricks and mortar retails from internet shopping. Retailers can also innovate and enhance customer experience by making customer service a 'point of difference' between them and their internet competitors," he said.
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